German retail sales unexpectedly fell in July

According to provisional data from Destatis, turnover in retail trade in July 2020 was in real terms 0.9% and in nominal terms 0.3% (both adjusted for calendar and seasonal influences) lower than in June 2020. Economists had expected a 0.5% increase in real terms.

In July 2020, the turnover in retail rose by 4.2% (real) and 5.6% (nominal) compared to the same month of the previous year, while both months, June 2019 and June 2020, had 27 days of sale. In comparison to February 2020, the month before the outbreak of Covid-19 in Germany, the turnover in July 2020 was 0.9% higher.

Retail sales of food, beverages and tobacco were in real terms 4.2% and 7.2% in nominal terms higher in July 2020 than in July 2019. Turnover in retail sale in supermarkets, self-service department shops and hypermarkets were in real terms 4.6% and in nominal terms 7.6% higher than in the same month last year. In addition, the retail sale of food, beverages and tobacco in specialised stores generated in real terms 0.4% and in nominal terms 3.9% more turnover. This is the first time since the beginning of the pandemic that the retail sale of food, beverages and tobacco in specialised stores had a higher turnover in real terms.

In the non-food retail sector, sales in July 2020 rose in real terms by 4.4% and in nominal terms by 5.1% compared with the same month previous year. The largest increase in turnover compared with the previous year's month in real terms by 15.6% and 16.6% in nominal terms was achieved by the internet and mail order business. Trade in furniture, household appliances and building materials also increased significantly, with a real plus of 12.9%. Trade in textiles, clothing, shoes and leather goods as well as the retail trade in various types of goods (e.g. department stores) did not yet return to the previous year's level, with real growth of -8.0% and -14.5% respectively over the previous year.